The major market averages fell on mixed volume. Past corrections since January 2013 were short and sharp, followed by a bounce of diminishing volumes but persistent nevertheless where the major averages would eventually hit new highs. The current correction is longer lasting with no accumulation day on the NASDAQ Composite observed since January 15. That said, quantitative easing could help the market find a floor sooner than later. Further, the pundits say 4000 is a critical level of support for the NASDAQ Composite, but the pundits also say 1775 was a critical level of support for the S&P 500 which, if broken, would send the markets a lot lower. The S&P 500 closed yesterday at 1751.64, firmly below its "critical" level of 1775. Since the S&P 500 and NASDAQ Composite highly correlate, maybe both camps will be "right" if the NASDAQ bounces here for a day or two, thus getting "support", but then rolling over and heading lower. Of course, there are far more important factors that determine the direction of the market than support levels which are secondary.
U.S. futures are up as well as European markets as the Bank of England left the size of its bond-buying program unchanged and held its key lending rate at a record low of 0.5%, where it has stood since March 2009. It also left its asset purchases at 375 billion pounds ($611 billion).
Meanwhile, the European Central Bank left its main refinancing rate unchanged, also at a record low of 0.25%. Some economists expected the ECB to lower rates even further in response to a weaker economy and low inflation.
Twitter (TWTR) failed to impress investors with its earnings announcement yesterday after the close and is gapping down around 20% this morning. Yelp (YELP) is gapping up this morning after announcing earnings yesterday after the close, and we are monitoring this for a possible buyable gap-up depending on how the action in the stock develops this morning.